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Home Business Non-Compete Agreement Texas

Texas Non-Compete Agreement Template

Prevent a person or business from competing with your company by using a Texas Non-Compete Agreement.

Updated May 21, 2023 | Legally reviewed by Brooke Davis

Businesses often use non-compete agreements to prevent employees from taking a job with a competitor or starting a competing business for some time after leaving employment. Non-compete agreements are allowed in Texas.

Table of Contents
  • Is a Non-Compete Agreement Legally Enforceable in Texas?
  • Reasonable Uses and Objections
  • Texas Non-Compete Limitations
  • Texas Non-Compete Agreement Sample

Is a Non-Compete Agreement Legally Enforceable in Texas?

Texas Business and Commercial Code § 15.50 governs the making of non-compete agreements. It provides that correctly drawn non-compete agreements that comply with the terms of the statute can be enforced.

Reasonable Uses and Objections

  • Enforceable when terminated without cause? Yes
  • Employee non-solicitation agreement permitted? Yes
  • Customer non-solicitation agreements permitted? Yes
  • Does continuing employment equal sufficient consideration? No
  • Statute of Limitations for breach of contract: 4 years

Texas Non-Compete Limitations

Time limitations

Texas Business and Commercial Code section 15.50 (a) requires that non-compete agreements must have a clearly defined limit of time which is reasonable.

Geographical limitations

The Texas statute also requires that non-compete agreements must have a clearly defined limitation of geographical area.

Other limitations

Business laws apply to all non-compete agreements. All non-compete agreements must be ancillary or a part of some other agreement that is otherwise enforceable. According to the Texas Business and Commercial Code terms, a stand-alone non-compete agreement does not appear to be permitted.

Special limitations apply to non-compete agreements covering physicians in Texas. To be enforceable in Texas, in addition to the other requirements for a non-compete agreement, a non-compete agreement covering a physician must provide:

  • The physician must be allowed to have access to the list of patients that he has seen or treated within one year prior to the termination of the employment contract;
  • The physician must be allowed to have access to the medical records of the physician’s patients, upon authorization, and must be allowed to copy the medical records, subject to a reasonable fee;
  • The agreement for access to the records must not require the records be kept or delivered in a format other than the one in which the records are usually maintained, except by mutual consent of the parties;
  • The agreement must provide for a buy-out provision at a mutually agreeable price, or, if the parties cannot agree, must provide for an arbitrator or court determination of a reasonable price;
  • The agreement must provide that the physician may continue to treat specific patients during the course of acute illness, even after the termination of employment.

Texas Non-Compete Agreement Sample

Below, you can download a Texas non-compete agreement in PDF and Word format:

non compete agreement template

Download PDF
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Start building your Texas Non-Compete Agreement here.

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non compete agreement template

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